27 March, 2025
The India logistics market is poised for substantial growth, with projections indicating it will reach USD 357.3 billion by 2030. This growth is expected to be driven by a compound annual growth rate (CAGR) of 7.7% from 2025 to 2030, reflecting the expanding demand for logistics services in the country.
Several factors are contributing to the robust growth of India's logistics sector:
Infrastructure Development: Significant investments in infrastructure, such as improved road networks, ports, airports, and rail connectivity, are making it easier and more efficient to move goods across the country. The government's focus on projects like the Bharatmala Pariyojana (for roads) and Sagarmala Project (for ports) is also enhancing logistical capabilities.
E-commerce Boom: The rapid growth of e-commerce in India is a major driver for the logistics industry. With more consumers shopping online, there is an increasing demand for reliable and fast delivery services. This is fueling investments in last-mile delivery infrastructure and technology.
Digitalization and Technology Adoption: The logistics sector in India is increasingly embracing digital tools like AI, IoT, and data analytics to optimize supply chain operations. Automation in warehouses and digital platforms for tracking shipments are helping reduce costs, increase efficiency, and improve customer experience.
Government Initiatives: Policies like the Goods and Services Tax (GST) have streamlined the tax structure, promoting a more unified national market and easing inter-state movement of goods. Additionally, the National Logistics Policy (2022) aims to improve logistics performance, making the sector more competitive globally.
Rising Manufacturing and Industrial Activity: India’s growing manufacturing sector, especially in areas like automotive, electronics, and pharmaceuticals, is generating an increasing need for logistics services. India’s status as a global manufacturing hub is further boosting the logistics sector.
Growing Investment: Both domestic and foreign investments in logistics infrastructure and services are increasing. This includes innovations in cold chain logistics, warehousing, and multimodal transport, which are essential for industries like pharmaceuticals, food, and agriculture.
With these factors, the logistics market in India is expected to see sustained growth, creating numerous opportunities for companies operating in transportation, warehousing, supply chain management, and technology. As the sector continues to expand, the benefits will extend beyond businesses, contributing to economic growth, employment, and improved supply chain efficiency in the country.
